|Todays trading update
'New Covent Garden Market
We have previously indicated that during 2016 we would be bringing the 10-acre Nine Elms Square site to market. Formal marketing commenced late summer and, whilst we are still at an early stage and there can be no guarantee that any transaction will take place, we can confirm that we have received firm levels of interest from a number of parties and the Board has been encouraged by the progress to date. We will provide a further update as appropriate in due course.'
The Company intends to announce its annual results on 7th February 2017.|
|Nine elms is the train wreck that will be the icon of the bust that is about to manifest itself, as the docklands was in the 90's bust, 20k properties being built in sw8 at the moment, many completed and not a single new build transaction in august in the whole of sw8 after a single transaction in july, this is going to be very ugly, having said that a large part of the bad news is priced in and the cov garden assets will do well with increased tourism off the cheap pound ....|
|Agree.The share price weakness appears to be in line with larger house builders.|
|I see no reason for the share price weakness.
I was in the Nine Elms area on Monday. Impressive amount of building going on. US Embassy looks fully built, Battersea power station in a sea of cranes, Wandsworth council promising to beautify the riverfront, and of course the new New Covent Garden a hive of activity.
Nine Elms is on an impressive bend in the river. St Stephen's Tower to the east and the old Pink Floyd power station to the west. If I was a rich foreigner, I would want a piece of that.|
|Any reasons for the sharp sell-off the past couple of days?|
|The Treasury is to allocate £2bn to boost housebuilding and address what Sajid Javid, communities secretary, has called a “moral duty” to tackle Britain’s longstanding housing shortage.|
|Apple have announced that they are moving their UK HQ to the old Battersea power station. This adds kudos to the Nine Elms district.
|I agree with what you've said, my point was that this is overdone, as the price has been driven by negative sentiment rather than asset values. The £21M reduction is a small proportion of the portfolio.|
|Bit Thick, what you may have missed is that there was quite a lot of press speculation about overdevelopment and falling demand at one of their largest regeneration schemes at New Covent Garden Market and a write-down of values at the half-year statement in July -
"These results absorb two negative factors:
- NCGM revaluation - during the period and based on recent transactional evidence, NCGM was revalued principally on the basis of a residential sales price reduction of 3.75%. This resulted in a £21m reduction of the valuation of our share of this asset. The NCGM valuation is consistent with our expectations and demonstrates that market evidence does not support the level of negative sentiment expressed during the first half of the year towards Central London Zone 1 residential prices and Nine Elms in particular.
- Stamp Duty Land Tax (SDLT) - a one-off £13m impact from the increase in SDLT announced in the recent Budget."
I'm sure over the long term this well-run company will continue to do excellently but at the time, that spooked the market and it took another hit - with all other property co/builders - on Brexit.|
|Bit Thick:cuts not following Current property values but expected Future property values since it will take years o convert its land bank to saleable properties.|
|Not sure this share follows property prices. In August 2015 it was nudging £5, in June 2016 it was less than half that. Did I miss the halving in property values? This is oversold and represents good long term value at these levels.|
|Property prices have been reported to have levelled off in the last few months. It had been predicted that the rises would end at some point. Perhaps it's a case of sell the rumour buy the news.|
|Best day for some considerable time for SMP. Any clues as to why? It would be nice to break and stay above the £3 barrier.|
|The world is getting smaller and outside of the EU we can trade with, and have investment from so many other countries. Yes, the transition may be volatile, but the risks from the Eurozone are ever present and Italian banks are likely to need a bail out. Then people will rush towards good, solid investments.
We may not have reached the bottom here but the descent is slowing. this is a good long term investment.|
|Global sovereign wealth funds are waiting to pounce on bargains instead of paring stakes in the U.K. following the Brexit vote, a senior industry expert said Friday.
"Sovereign wealth funds are patient capital. They have a long term investment horizon," Michael Maduell, president of the Sovereign Wealth Fund Institute, told CNBC's "Squawk Box" on Friday.
"When everyone is freaking out about the pound sterling going to a 31-year low, wealth funds can come in and tactically purchase assets and tactically place bids on companies."
In the wake of the U.K.'s referendum vote to exit the European Union (EU), the pound has plunged to its lowest levels since 1985 and a leadership vacuum has emerged in the wake of the resignation of Prime Minister David Cameron.
A rush of fund outflows from the U.K. has spurred several property funds -- including those run by Standard Life, Aviva, M&G, Columbia Threadneedle and Henderson -- to suspend redemptions as investors clamored to yank their money.
In addition to short-term market gyrations, a possible exit from the EU will also have long-term consequences.
Brexit may have put London's status as a major financial center at risk as an exit from the EU would likely cost it its ability to trade freely with the continent.
"These are the opportunities that cash rich wealth funds can take advantage of," Maduell said. "They can jump on real estate when it goes too far down."
Maduell noted that a number of sovereign wealth funds, including Singapore's Temasek, Malaysia's Khazanah and the Kuwait investment office, already had offices in London.
Brexit may also be a factor in a slowdown in deals by sovereign wealth funds, Maduell said.|
|The fund suspensions should help in the short term, but this panic has a few weeks in it yet. I've got my vomit bag ready.|
|I'm not sure we'v reached the bottom yet but i've got my fishing rod out just in case.
Seeing a couple of Director buys is always encouraging.|
|Don't think Carney is helping. There cannot have been reliable statistics, post Brexit vote, so I can't see the justification for all this doom and gloom|
|Yes - the sector is getting battered.Investors also further spooked by those property fund suspensions no doubt.Jonas Crosland in the IC has reiterated his buy stance this evening.'Analysts at Peel Hunt expect to downgrade full year end NAV from 477 to 460.''Given rental income is growing well, the discount is hard to justify. We're still buyers.'Balls of steel and all that but, taking a longer term perspective, could this now be a good buying opportunity?|
|Not the greatest update today but some positive stuff in there. It would seem the market has took the view that property prices have topped out and it's all doom and gloom going forward. Everything remotely connected to property being marked down.|
|Given positive trading comments re improved nav at half year and year end these look oversold - like many other stocks on the Brexit news. Trading could of course worsen but I doubt it will fall of a cliff so looks way overdone to me - the world is not going to end and with a growing population, people will always need homes. Bought a few 272p. Will have to revisit in a few weeks and see if they are cheaper still, or not.|
its the oxman
|Real Estate Investment Trusts, Builders all down today but SMP seems particularly hit.
DOW down 3.4%. I bet the Yanks are lovin' us.|
|down 19% today..|
|Difficult to understand why the price came back so much - although the London worry effect may have been a contributory factor.
Will stay with this one as it hopefully re-rates.
Property company St Modwen said the trading for the year had started well as it continued to extract both short and long-term value-generating opportunities from its land bank through asset management activities, remediation, and success in planning and development.
In a pre-close statement for the period 1 December 2015 to 31 May 2016, St Modwen said it continued to add new opportunities to its commercial development pipeline, which stood at 1.7m sq ft and comprised a variety of uses in those regions where there was good evidence of occupier take up.
Chief executive Bill Oliver said: "We have experienced a good start to the year as our extensive regional portfolio, commercial development pipeline and housebuilding activities continue to produce real opportunities for growth in terms of group net asset value which we expect to demonstrate at both the half year and the full year 2016, leading to long-term value creation for our shareholders."
"Our housebuilding activities through St. Modwen Homes have stepped up a gear and have overtaken the Persimmon Joint Venture with 14 sites under development and another four expected to start on site during the second half of the year."
"Overall the housebuilding area of the business remains very profitable, reflecting the strong consumer appetite for housing across the UK, with reservation rates and sales prices currently ahead of targets."
"Demand for residential land from third party housebuilders is good and we have agreed or completed site sales in the period for prices at or above book value."
The procurement of the market at New Covent Garden Market was now underway, St Modwen said, with vacant possession of the 10 acre Nine Elms Square site anticipated for spring 2017.
The company reaffirmed that it intended to either sell, joint venture or develop the site during 2016.
During the period the majority of St Modwen's acquisitions activity was focused around the North West region where it invested in a number of retail and industrial-led opportunities including Crosby Town Centre, Liverpool and Warth Industrial Estate in Bury.
"We have also signed a number of Development Agreements across the UK, the most recent being to develop 1m sq ft of industrial space at Chippenham, Wiltshire and also with the London Borough of Greenwich for the £200m development of the new Spray Street Quarter in Woolwich and in joint venture with Notting Hill Housing," the company said.
"At the same time, we have disposed of those assets to which we can no longer add material value, all above book value and including Queensmead Shopping Centre, Farnborough for £16.|
|Yes, a lot to like, particularly the following:
Following strong investment activity at the end of 2015, annualised rent roll has grown to £60m and now covers the operating costs of the business which further underlines our strong financial base.|